Surging public debt and rising bond yields in advanced economies are threatening to undo the progress of developing and low-income countries in reining in their own debts, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned in a new interview with Reuters.
Georgieva said in an interview on the sidelines of a G-20 finance leaders meeting in North Carolina that bond yields are being driven upwards by higher overall debt levels, continued inflation pressures from the still-closed Strait of Hormuz, and competition for capital from AI-related debt issuance.
"This is not just a low-income developing countries problem," Georgieva said.
"High debt levels in advanced economies, combined with stubborn inflation, could lead to debt service costs going up for everybody, including for the low-income, for the emerging markets and developing economies."
U.S. government bonds have sold off in recent weeks, pushing the 30-year U.S. Treasury yield to near two-decade highs.
